R&q Insurance Share Discussion Threads

[red ninja] 23/10/2020 14:29

J O HAMBRO CAPITAL MANAGEMENT LIMITED have sold another 0.83% of RQIH.

I wonder if they are pairing down their holding or wanting to exit.
There at least does not appear to be shortage of RQIH buyers at the moment.

[geraldus] 21/10/2020 15:02

Just had it drop through,you beat me to it.

[edmonda] 21/10/2020 14:56

Free access to Equity Development notes: latest update thinks that, after strong recent H1 results and deals, the shares look materially undervalued standing at 11.2x FY20e EPS, with a 6.1% prospective yield, and at a steep discount to listed peers.

Read that full note here:

[geraldus] 21/10/2020 14:54

Is the penny dropping now?Good to see blue today.

[red ninja] 19/10/2020 09:47

Many Thanks John for the note.

[jonwig] 19/10/2020 07:35

breezer - yes, that's where I got it.

CA don't simply put their research on their website: you need a third party to get it.

[breezer_42] 19/10/2020 07:32

I think you should be able to read the Capital Access note with a free account? hxxps://www.research-tree.com/companies/uk/general-insurance/randall-quilter-investment-holdings-ltd-/research/capital-access-group/randall-quilter-interim-update-progress-further-opportunities/23_2020101607291868123

[lord gnome] 19/10/2020 07:09

Duly received John. Many thanks. An interesting read.

[jonwig] 19/10/2020 06:29

Have posted the RQIH note for those requesting.

geraldus - didn't get your message.
Will send as soon as you re-post it.

[geraldus] 18/10/2020 05:55

Have also messaged you,thanks.What is your opinion on the potential price appreciation for RQIH ?

[lord gnome] 17/10/2020 14:31

Thanks jonwig. I have PM'd you as requested.

[jonwig] 17/10/2020 11:29

Capital Access Group has produced a nine-page (positive) report on the results.
They repeat that the investment returns will reverse in H2, and on my concern about the large technical provisions they say:

In 1H20 the biggest drivers were the increase in Receivables and a significant increase in technical provisions, which result from uncertainty in the long tail liabilities of the portfolios in run-off in Legacy. These liabilities can change significantly when reviewed, which appears to have happened during H1. The risks include asbestos, pollution, health hazard and other US liability insurance, claims for which are typically not settled for years after policies have been written.
Which doesn't really help much, as we knew that!
The best take I think is that they're bringing forward future losses and some of them might be reversed.

I got the report from Research Tree. If anyone wants a copy, PM me with your email address. I'll send it from Monday onwards.

[jonwig] 14/10/2020 18:40

Yes, they explain the statutory figures by the investment returns which are reversing. no mention of the provisions.

Also point out that program underwriting is now profitable.

[lord gnome] 14/10/2020 17:12

FWIW, IC has today raised its rating of RQIH from Hold to Buy.

[riverman77] 14/10/2020 11:16

The investment returns accounts for some of it, but the bigger part seems to be how the new acquisitions are treated from an accounting perspective. Last year, the company saw an immediate uplift from one of the big acquisitions purchased at a discount. This year, it seems the gains will feed through over future years. Importantly, the company states they still target the same returns (over 15%). I think you just have to accept that returns will be lumpy, but should be strong in the long term.

The investment returns don't concern me as they will just be mark to market movements in the bond prices. As long as the bonds don't default these will reverse. The portfolio is very high quality/credit rating, so I think the risk of defaults is extremely low.

[red ninja] 14/10/2020 10:49

The results look good on an operating basis ie the legacy and program management.

RQIH can be adversely affected in volatile times by investment returns and thus it was this time ie "However, as a consequence of negative market reactions to the economic uncertainty that prevailed during the early months of the pandemic, we recognised £(7.1) million of net realised and unrealised Losses in H1 2020".

Sound like some of that will be reversed ie a "substantial" amount.

Maybe, a lot of short term money was buying the stock looking for a quick return in the last few weeks and maybe it is that money which has sold out today.

I must admit the "investment returns" part concerns me on this business.

[geraldus] 14/10/2020 10:33

More patience required by the look of it.A divvy in the meantime.

[jonwig] 14/10/2020 07:43

My reading is that these provisions arise from Legacy transactions, and measure expected losses over a "long tail" of claims, calculated using Solvency II rules.
Were these adjustments to earlier numbers (in which case why so large) or from new legacy deals (but they dwarf recent negative goodwill profits)?

Or shouldn't we bother, because they will be reversed when future losses are incurred?

It looks like the market would have liked a bit more, too.

[lord gnome] 14/10/2020 06:43

Yes, jonwig. Narrative is very positive but clearly, my reading of the numbers is leaving something to be desired. I feel the need for an interpreter.

[jonwig] 14/10/2020 06:38

Interim results:



Narrative reads well, and a restored cash distribution (3.8p, late Nov).

Part of profits fall is down to lower investment returns (being reversed, so OK).
But what about "Movement in gross technical provisions" which has gone from £(81)m to £(300)m? The extent of this shift isn't explained. Or have I missed something? Quite possibly.

[geraldus] 13/10/2020 16:39

The time has come this weekto see what RQIH is capable of apart from being Covid proof.

[alter ego] 13/10/2020 11:14

"Randall & Quilter Investment Holdings Ltd.

Accredited announces new program underwriting partnership with Attune Insurance

13 October 2020

Accredited Surety and Casualty Company, Inc. ("Accredited"), a wholly owned subsidiary of Randall & Quilter Investment Holdings Ltd. ("R&Q") and a Florida domiciled insurance company licensed in all 50 states to write admitted business, is pleased to announce that it has entered into a new program partnership with Attune Insurance ("Attune"), which is a program administrator and has specific experience in commercial insurance programs, currently managing a Business Owners' Policies (BOP) program with over $100M in written premium in 2019. "

source.

[red ninja] 13/10/2020 11:08

New underwriting partnership :

"Alan Quilter, R&Q Group CEO, said: ''This is an exciting new partnership with a significant sized account and we look forward to a growing relationship with the Attune team. Working with Attune is further evidence of our commitment to supporting high quality program business, with superior MGAs, across the US and highlights the important role that Accredited plays in this arena."

[petomi] 13/10/2020 08:25

Results due tomorrow ("on or arounmd 14 October"). There has been a lot of positive newsflow and if they can pay a decent cash interim divi, rather than the more notional scrip divi at year end, this could take a serious step up.

GLA